Sunday, September 6, 2015

O R O P : BATTLE OROP WON WAR YET TO BE WON :- INT SUM OROP AS ON 1800 HRS 06 SEP

 SOURCE ;
http://ex-servicemenwelfare.blogspot.in/





           O R O P :   BATTLE OROP WON
               WAR YET TO BE WON : 
                          INT SUM OROP
               AS ON 1800 HRS  06 SEP  2015



Monday, September 7, 2015

TOI EDITORIAL - OROP At Last - NDA makes good its promise, soldiers get their due on a justified demand

Prime Minister Narendra Modi promised during his Independence Day speech to deliver One Rank One Pension (OROP) for retired defence personnel, and now defence minister Manohar Parrikar has fulfilled that pledge. This is a great day for jawans and officers, fulfilling a justified demand of veterans that was outstanding for 42 years. UPA had announced OROP last year but the NDA government will actually implement it now.Under OROP all pensioners of the same rank and duration of service are treated on par and the date at which a soldier retires is irrelevant in determining pension. There are cogent reasons to use OROP as the underlying principle in fixing defence pensions.Though details of OROP announced by Parrikar may not have met with all expectations of veterans, in view of the economic constraints which challenge any government, veterans should accept it.

 Soldiering has unique dimensions which make it imperative for governments to apply a different yardstick as compared to other arms of government service. A majority of soldiers retire between 35 and 37 years of age, unlike personnel in other arms of government. In addition, given the harsh conditions under which they serve, OROP was a justified demand. Pensions, however, cannot be considered in isolation. All governments face the challenge of prioritising allocation of scarce resources. In India, pensions have been one of the fastest growing expenses in union budgets, increasing by 22.45% between 2011 and 2014. In fiscal 2014 pension payouts recorded Rs 74,896 crore, almost 5% of total spending. In the immediate future, another Rs 8,000-10,000 crore will be spent on defence pensions on account of OROP. Today, defence personnel get about 62% of the aggregate pension payouts of the union government. OROP will further enhance their share. Hopefully, veterans who were initially unhappy with OROP details outlined by Parrikar will rethink their position.
 

 India is set for another rise in salaries of central and state government employees 2016 onwards on the heels of suggestions which will be made by 7th Pay Commission. These suggestions must be temperate, keeping in mind the fragile economic situation of the country and the need for fiscal prudence. It is important to remember that India is a country with a young population. If government spends a large part of its finances on salaries and pensions there will be little left over for education and infrastructure, which will take its toll on India's youth.
(SOURCE- TOI)

BRIEFING ON OROP

Dear Members 

Happy Janmashtami to all. UFESM is happy to announce that this Janmashtami has brought Good News of sanction of OROP for ex-servicemen.

Fifth September 2015 is a very auspicious day when our fight for OROP, 30 year old demand, has at-last been approved by the NDA Govt. Initially in 2008 ESM started the fight for OROP with the Govt and planned many rallies to communicate to Government that Armed Forces Personnel and Ex-servicemen are being given raw treatment in Independent India. 

IESM organised many rallies in last six years to convince all political parties that ESM need to be given OROP and need solution for some of their difficulties like medical attention, war memorial and ex-servicemen commission. UFESM was formed in June 2015, to unitedly put up fight for OROP. It is the effort of UFESM that OROP dream has has come true.

UFESM Thanks Prime Minister; UFESM sincerely thanks Prime Minister Sh Narendra Modi ji for taking personal interest in OROP and ensuring approval of OROP on 5 Sept 15. Last minute insertion of a clause of VRS surprised ESM all over India and subdued our celebrations. 

This planted a suspicion in mind of ESM about the real/hidden intent of bureaucrats.  This issue was never discussed in any meeting between Government representatives and UFESM. It seems that someone in the Government is not happy with approval of OROP for ESM and has inserted VRS clause to derail OROP for ESM. 

UFESM feels that there is a need to fix responsibility for this faux paus. 

This has resulted in changing Jubilation into cautious optimism by ESM. However this issue was clarified by RM Sh Manohar Parrikar to UFESM delegation in meeting in the evening on 5 Sep 2015. He confirmed that VRS is not applicable to ESM and Armed Forces Personnel and hence all personnel taking PMR will be entitled for full OROP. 

UFESM is thankful to Prime Minister of India Sh Narendra Modi ji for clarifying this in the speech on 6 Sep 15 at Faridabad. He assured ESM that someone is misleading the ESM by inserting the clause of VRS in the declaration of OROP. There is need put all doubts to rest that OROP is applicable in full to all ESMs (including ORs, JCOs and officers). He further confirmed that he has lot of love and respect for ESM and ESM will get full benefit of OROP as announced by RM. 

Respected Prime Minister sir ESM all over India reciprocate this feeling and affirm their respect for PM. 

However there are some minor issues which need to be attended on priority for OROP to be fully functional.
  • Government has recommended  fixing of pension based on mean of max and min of basic pay of the year; This arithmetic defeats the basic definition of OROP as it will lead to one rank and many pension and hence is not acceptable to ESM. There will be very minimal expenditure to Government on this issue.

  • Periodical pension equalization has to be one year whereas Govt  has announced it to be five years thereby completely distorting the OROP definition. Government has recommended that this issue will be referred to a single judge committee to adjudicate the period of pension equalization. UFESM is of the opinion that committee should consist of five members out of which three should be from ESM and one serving soldier under the chairmanship of a judge. This report should be completed in fifteen days or max one month. 

  • MOD must confirm the date by which the Government letter will be issued. Agitation and RHS will be called of only after receipt of Government letter. Our experience with bureaucrats has been less than satisfactory because ESM had been shortchanged on many occasions in language of the order. Latest experience being that of Rank pay issue.  
In view of clarification given by honorable PM  that VRS is not applicable to Armed Forces, Fast unto death has been discontinued. All eleven ESM on fast unto death for last 24 days were referred to RR hospital and Rockland Hospital qutab institutional area for medical examination. 

However RHS and agitation will continue till issuance of Government order for OROP. 

Col Inderjit Singh, Lt Gen Balbir singh and Maj Gen Satbir singh has provided sterling leadership to lead the campaign to make dream of OROP a  reality. All ESM salute their dedication and hard work.   

This agitation has lasted for 84 days and FUD has lasted for 24 days. The agitation has been going on in over 80 towns across India. The agitation has been very peaceful and has never caused any inconvenience to civil order. Human rights of India has accepted that this agitation has been very disciplined and has recommended for this years prize. 

Maj Gen Satbir singh has been invited by NRI of USA to visit San Frisco on 18 Sep in view of sterling leadership provided by him in planning and conducting this agitation. He has been invited as special guest to San Frisco to coincide with the visit of PM of India.

UFESM has called for a Gaurav Rally at 1000h to 1500h on Saturday 12 Sep 2015 at Jantar Mantar to 
  • Celebrate realization of our dream of OROP. 
  • Thank Government in fulfilling their promise. 
  • Remind Government to iron out the minor problems and issue Government order within 15 days or latest by 30 Sep 15.  
ESM from all states are requested to attend the rally in large numbers. 

Gratitude; UFESM is thankful to 
  • Sh Rajeev Chandrashekhar MP Rajya Sabha for supporting cause of OROP. He has been true friend of ESM and has helped us in mediating the complex issue of OROP. He had been very helpful in arranging meetings with RM on short notice. 

  • Dr Lal's Path lab for extending lab services to check the condition of ESM on Fast unto death. 

  • RR hospital for treating ESM on fast needing treatment because of fasting. 

  • Rockland Hospital for conducting medical examination of ESM on fast unto death. Dr Col Bheemwal needs a special mention as he had been sending a team of doctors everyday morning to check the ESM on FUD. He had been himself coming every day evening to check the ESM on FUD. 

  • Dr Ankit Om and his friends for providing medical cover to ESM on FUD. 

  • Bangla sahib Gurudwara and Gurudwara Rakabganj for providing accommodation to ESM visiting Delhi for participating in the agitation. 

  • Delhi Gurudwara Prabandhak Committee for providing langar to supporters visiting JM in large numbers. 

  • All ESM, NDA courses, Regiments  for contributing with open heart to support the agitation. 

  • All ESM for providing break fast at JM,  Col Ashok Malhotra's contribution needs special mention as he had been instrumental in coordinating with various agencies to provide breakfast.
  •  
  • Col Alexander CEO Metro Multimedia Technologies (Digital) for providing banners for making stage for agitation. 

  • A team of volunteer ESMs who had selflessly worked in managing all activities at JM, without them management of this agitation would not have been possible. 

  • Many veterans of importance who had been helping in arranging meetings at short notice with RM and FM.
 
Regards
Gp Capt VK Gandhi VSM
Gen Sec IESM
(Source- via Gp E-mail)

MISSION PENSION - Will `pure VRS' cases be excluded from OROP?



The government is expected to closely consider whether the “clarification“ the defence ministry will issue on OROP benefits should exclude personnel taking premature retirement on a purely voluntary basis while including those who left service due to injury or for being declared otherwise unfit to continue in the armed forces.As the government gets down to resolving the complex nitty-gritty of OROP, the argument under the scanner is whether personnel who opt for premature retirement on their own can claim that the principle of same pension for same rank applies to them as compared to those who either completed their entire tenure or left involuntarily .

 The argument advanced by a section of ex-servicemen that many opt for early retirement as they do not see much scope for promotion in the armed forces is not seen to be convincing as the terms of employment are well set and understood at the time of enrolment. Also, many such retirees usually leave the forces to seek re-employment elsewhere.

 While officers may choose to opt out, the government does incur considerable expense on their training while in service, and these sums are not trivial. In fact, the skills so gained are an important factor in making retired defence personnel eligible for employment outside the forces. To a varying degree, personnel from all services are employable outside.

 The underlying principle of OROP, that armed forces personnel retire early and get smaller pensions in comparison to other government employees who work for longer years, falls flat in the case of those who choose to opt out and also find choose to opt out and also find re-employment.

 It is not the case that such personnel do not draw benefits as they will continue to receive existing pensions. But what is seen to require much closer examination is whether they are eligible for enhanced benefits under OROP.

 The government seems quite clear that “equalization“ of pension will take place only once in five years as attempting to do so annually, or even bi-annually, as demanded by ex-servicemen, is seen to be an administrative nightmare. The sheer `administrative costs' will undercut the feasibility of the OROP policy . The annual fiscal burden may be around Rs 500-700 crore, but the computational logistics sharply reduce its benefits.

 Retired personnel number around 17 lakh, with government figures differing with the 24 lakh claimed by ex-servicemen. The number increases by around 60,000 a year and those in the know say that the real computation cannot be predicted by any model, including the ones put forward by the agitators. On the basis of the public policy principles of balancing benefits and economic costs -a policy that is unimplementable will not help the intended beneficiaries -annual revision is ruled out. On this count, OROP fails on the efficacy, efficiency and equity test.

 The calculations on whether the increases will be in the range of 2% over the annual outgo is being examined. Even so, over the Rs 48,000 crore burden, the addition can be Rs 500-800 crore. The veterans have argued that the increase may be just Rs 40 per person per month in which case a five-year equalization is not much of a problem.
As things stand, the officer ranks at senior levels can see sizable jumps from Rs 65,000 to Rs 80,000 plus and these quantums and percentages are more than what “other ranks“ will get.So, while officers account for about 2.5% of retired personnel, they will get around 10% of the OROP fiscal outgo.

 An examination of the historical situation also shows that before 1973, when pensions were reduced to “civilian“ levels, there was no equality with standard tables distinguishing the amounts given to personnel depending on when they retired, the periods being bunch as 1953-61, 1961-68 and 1969-72.

 The pensions changed with the 6th pay commission. Now, the formula worked out by the government sees retirees who might have held the last rank -lets say havildar -for different periods of time getting an average pension. This will be done even while protecting those who did well and spent more time at a higher rank. The estimated outgo on arrears is Rs 10,000-12,000 crore.
 
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(sOURCE- TOI)

OROP even for those taking voluntary retirement: Modi

Prime Minister Narendra Modi on Sunday said he had fulfilled his promise to implement one rank, one pension (OROP) in contrast to previous governments that paid mere lip service to the issue and slammed critics of the decision for attempting to mislead the armed forces while assuring ex-servicemen that residual niggles would be sorted out.
Speaking at the launch of the Delhi-Faridabad Metro, Modi emphatically reassured the armed forces community that those who opt for premature retirement would receive OROP benefits. “If anybody gets OROP, jawans will be the first.Those injured, those who had to compulsorily leave will get OROP. A prime minister who loves the armed forces cannot even think of depriving such people of OROP benefits,“ he said.
“The bulk of the Rs 10,000 crore of OROP will be for the jawans and soldiers who have served 15 years for this country . Don't be misled.There is no pay commission that has been set up. It is only a judicial commission to address any shortcomings, to see if any small changes are needed,“ he said at the meeting where he was greeted on stage by several retired armed forces personnel, many of whom presented flowers to the PM.
Sharply targeting Congress, Modi asked, “Do those who did nothing for 40 years have the right to speak on be half of jawans“, getting the crowd to shout a loud “no“ in response. Referring to UPA's interim budget before the 2014 election, he said, “Those who allocated Rs 500 crore could not understand the issue. They only misled you and committed sins. They want to score political points... One-upmanship will not help the nation.“
Addressing a large and responsive crowd, Modi said he began his campaign as BJP's PM candidate in September 2013 at nearby Rewari promising he would implement OROP. “After I became PM, I realized this is a complicated matter. I have separated it strand by strand to reach a solution. It was pending for over four decades. Everyone paid lip sympathy but no justice was done,“ he said. The PM urged exservicemen to allow a committee proposed along with the OROP award to resolve pending issues. “If there are some shortcomings, allow the committee to examine the issues,“ he said.
Looking to strike a chord with his Haryana audience, he said one in 10 armed force personnel hailed from the state and enhanced pension benefits will be a major economic boost.Emphasizing his personal involvement, he said he closely monitored the OROP issue and realized the Rs 300 crore mentioned by a parliamentary committee or Rs 500 crore by the previous government were to tally inadequate.
Perhaps seeking to drive home the quantum of benefits being offered to ex-servicemen, he said, “This is not just a matter of Rs 300 crore or so... The payments will amount to around Rs 8,000-10,000 crore.“
The PM's politically significant comments come a day after the government announced the OROP package after months of tough negotiations during which ex-servicemen staged a dharna and went on indefinite fast. His strong defence of the decision, appeal to ex-servicemen to accept the award and counterattack against Congress were intended to defuse an issue that had become a political hot potato for the government. His forceful intervention seemed to have had its effects with the ex-servicemen significantly scaling down their protests.
Now, Govt to tackle AI pilots' OROP issue
New Delhi: After solving ex-servicemen's one rank, one pension (OROP) issue, the government will now turn its attention to the OROP demand of Air India pilots. AI chairman Ashwani Lohani, who took over last Monday, has held several meeting with pilots and assured them of resolving their genuine grievances while firmly telling them not to go on strike.
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Veterans call off fast after PM clears air -But Stir To Go On Till All `Sticky Points' Are Resolved
 In a significant de-escalation of ongoing protests following Prime Minister Narendra Modi clarifying that defence personnel who take voluntary retirement would also get the benefit of one rank, one pension (OROP) scheme, military veterans on Sunday withdrew their hunger strikes. While the fasts were called off, Indian Ex-Servicemen Movement chairman Major General (retd) Satbir Singh said the 85-day-old peaceful protest would continue till all “the sticky points“ in implementing OROP were resolved.The mood was more conciliatory a day after the OROP announcement. “We thank the PM for fulfilling the promise of OROP . We urge all those who are on hunger strike to withdraw as the PM has clarified on the issue of premature retirement. But our protest will continue till the government accepts the four points raised by us,“ Gen Singh said.
The bone of contention between the government and veterans continues to be the interval at which the “pension equalization or adjustment“ will be carried out.While announcing OROP on Saturday , the government said pension revision would be done once every five years, while the veterans want it every two years. The government has made it clear that it will not budge from the fiveyear pension reset decision.But what might be negotiable is the composition and terms of the committee to be set up to examine the “interests of retirees of different periods and different ranks“ as well as consider inter-service issues under OROP .
The government on Saturday said the one-member judicial committee would submit its report in six months. The veterans want a five-member committee, with three of their representatives, to submit the report within a month. The other sticking points remain the rollout date for OROP (the government has fixed July 1, 2014 but veterans want April 1, 2014) and the base year for pension fixation (government has fixed the 2013 calendar year, while veterans want March 31, 2014).
But these remaining issues apart, there is a clear softening of stand among the veterans after the government announced the implementation of OROP , which was promised by successive governments but never actually implemented till now.
As earlier reported by TOI, retired officers will now get a monthly hike ranging from Rs 8,000 to Rs 22,000 over their existing pensions under OROP , while jawans and junior commissioned officers will get Rs 2,200 to Rs 9,000. The calculations will depend on several variables, including rank, length of service and date of retirement. Personnel who retired relatively earlier will get more than those who retired later in order to bridge exist ing gaps. The outrage among veterans after the government on Saturday initially said that those who take VRS would be kept out of OROP ambit has also ebbed.
With limited promotion avenues available in the armed forces, around 45% of officers take voluntary retirement after completing 20 years in service which makes them eligible for pension. Jawans and JCOs, similarly , become eligible for pension at 15-17 years.This also serves the aim to keep the armed forces “young and fighting fit“.
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(sOURCE- TOI)



Sunday, September 6, 2015

OROP, After 42 Years Of Battle - Some Issues Still Remain: Veterans

Over 40 years after it was first demanded, 84 days after military veterans upped the ante by sitting on dharna and even going on a fast-unto-death and following PM Narendra Modi's Independence Day pledge to deliver his poll promise, the Centre on Saturday announced im FULL COVERAGE: P13 plementation of `one rank, one pension' (OROP) for over 24 lakh ex-servicemen and 6 lakh war widows in the country .
Defence minister Manohar Parrikar said the detailed government order for OROP would be issued in a month or so under the special category of “military pension“ to fulfill the commitment made by the PM “despite the huge fiscal burden“ of Rs 8,000-10,000 crore every year. “It's a matter of deep anguish that various governments remained ambivalent on the issue of OROP,“ he said.
The package announced on Saturday confirms the details published in TOI's front page report on September 5.
The drama did not end with the announcement as Parrikar met a delegation of veterans late on Saturday to address discontent over personnel opting for voluntary retirement being kept out of the benefits. “The minister agreed there is no VRS in the armed forces. So, OROP will be applicable in premature retirement cases also,“ said Indian Ex-Servicemen Movement chairman Major General (retd) Satbir Singh. Though the VRS was a major stumbling block, veterans still have some issues that they feel are not resolved, but Gen Singh said a call whether to continue the agitation at a meeting on Sunday morning.
With delay in the OROP announcement seen to hurt the government's credibility and the issue also figuring at the BJP-Sangh deliberations that ended on Friday , the OROP has been a major political problem for the government. BJP sees serving and ex-servicemen as a major constituency and the sentiment attached to giving veterans their due resonates with the party's “nationalist“ credentials, making resolution of OROP an urgent task.
The veterans welcomed the “intent“ to implement OROP but said they were some issues like the government's decision to allow “pension equalization“ only once every five years, and not a revision every two years as they had demanded to be considered. At his late evening with the veterans, Parrikar assured that the government will come out with “a clarification“ on the VRS issue in a day or two.
Officers and other ranks often opt for PMR after becoming eligible for pensions, on com pleting 20 years and 15-17 years of service respectively , since promotion avenues are extremely limited in the steeplypyramidal structure of the armed forces. This also keeps the forces young and fightingfit. Expressing “satisfaction“ on the PMR front, Maj-Gen Singh said there were “other issues“ still pending. “We will take the decision on whether to continue our agitation after talking to the core group,“ he said.
The veterans also demanded that the government reconsider its move to set up a onemember judicial committee to “thoroughly examine interests of retirees of different periods and different ranks“, consider inter-service issues and submit its report in six months. Instead, they said a five-member committee, with three of their representatives, should be set up to submit a report within 30 days.
The fact, however, remains that implementation of OROP will bridge the gap in pensions between veterans who have retired earlier and those who retire later, which had progressively increased with each Central Pay Commission every 10 years.Rough estimates show that while retired officers will get a monthly hike ranging from Rs 8,000 to Rs 22,000 over their existing pensions, jawans and junior commissioned officers will get Rs 2,200 to Rs 9,000.
But with the gap between the government and veterans on several issues still persisting, defence minister Manohar Parrikar, flanked by the three Service chiefs, merely read out a statement to announce implementation of OROP , without taking any questions.
Parrikar did, however, attack the previous UPA government for providing only Rs 500 crore in the February 2014 budget without specifying what OROP would be, how it would be implemented or how much it would cost. “The present government has accepted OROP in the true spirit without being constrained by inaccurate estimates,“ he said.

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`Govt cheated on all points'


Ex-servicemen on Saturday said the government didn't accept some of their key demands and said their agitation would continue. Accusing the Centre of adopting dubious means ahead of Bihar polls, Colonel K D Pathak (retd) said, “It's cheating on all points, except agreeing on OROP's definition. It's aimed to delay implementation and create dissent between veterans.“ But Lt Gen (Retd) B T Pandit said: “We have to hope that sustained pressure from ex-servicemen, civil society and media will force government to provide what they committed.“
===================================================
FINALLY, OROP'S ON BUT HICCUPS STAY-Some key demands still unfulfilled, say agitators
A gitating veterans unhappy on Saturday over government's one rank one pension announcement mellowed down after a late-evening meeting with Defence minister Manohar Parrikar.Describing the interactions with Parrikar as “positive“ a representative of the negotiating team said the veterans would decide on whether they would go ahead with their September 12 mega rally in a day or two. This will depend on what the defence ministry comes up with, he said.
But on Saturday afternoon the veterans were pretty sore over the fact that the Centre still hadn't accepted five of their key demands, one of these being inclusion within OROP of those ex-servicemen who had taken voluntary retirement. After the Parrikarveterans discussions in the evening, the government gave an assurance on this saying it'd issue a clarification on the matter.
Colonel (retd) Charanjit Singh Khera, general secretary of Sanjha Morcha (Chandigarh), stressed the need to accept the VRS demand: “Premature retirees also get pension. They leave only when no promotion is due. Does the government want forces full of superseded officers and men?
The VRS clause is an afterthought and not acceptable.“
But even if this sticking point seemed to be getting resolved, there were at least four more outstanding issues to be resolved such as the review of pension every two years and the strength of the proposed judicial committee to work out the rollout of OROP .
Soon after the OROP announcement, Major General Satbir Singh, leader of the OROP stir, sounded unhappy: “Key issues raised over the last two months haven't been addressed.“ He talked of a rally the agitators were planning on September 12.
But on a more positive note, former chief of air staff Air Chief Marshal P V Naik said, “We need to accept the provision of review (of pension) every five years, considering an annual review would have to be a gigantic effort.“
Rejecting the one-member judicial committee clause, Brigadier (retd) Harwant Singh said the panel must have five members -three veterans, one army regular and a government representative. “ A one-member panel won't understand armed forces' working constraints,“ he said. But Lt Gen (Retd) B T Pandit differed, saying the OROP announcement was a big start. “We need to give time to the government to resolve these remaining issues and the ex-servicemen need to call off their agitation,“ he said.
Inputs from Delhi, Pune, Chennai and Chandigarh
==================================
`DOING POLITICS' - Govt diluted the package, claims Cong

Congress rejected the government's claim that it has resolved the long-standing `one rank one pension' (OROP) dispute, saying that the components of the decision announced on Saturday were a `betrayal' of the ex-servicemen community .
“The government has substantially diluted the component of the OROP package,“ said former defence minister A K Antony, who held the ministry till the UPA was voted out of office.
The senior Congress leader criticized the government g for excluding former armed e forces personnel who had opted for voluntary retirer ment from the package.
, He said 90% of service  personnel retire between 35  and 40 years of age. Antony  also took exception to defence  minister Manohar Parrikar's remarks that OROP was be l ing implemented for the first d time in four decades.“The de“ fence minister is doing poliB tics,“ Antony said.e But there was no certainty a on whether Congress would e participate in a rally being e called by agitating ex-servd icemen in Delhi soon, choos l ing instead to target Prime Minister Narendra Modi for having promised to fully im , plement OROP within 100 h days of coming to power.
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Historical injustice corrected, says Shah


The OROP announcement marks the fulfilment of a promise to ex-servicemen by PM Modi and fixes a historic wrong dating to the 1970s when the Congress gov ernment slashed pension benefits of armed forces personnel, said BJP chief Amit Shah.Shah told TOI the government had worked hard on delivering on a complex issue that involved sentiment, chal lenging fiscal calculations and adjustment of ranks and benefits of pensioners. “The government's been working to resolve the issue almost since the moment the PM took oath of office. He repeated the pledge this year on Independence Day ,“ Shah said.
He said ex-servicemen received pensions amounting to 70% of last drawn salaries till 1973 before it was cut to 50%.“Ex-servicemen were put on a par with civil services and this injustice took 40 years to rectify. BJP was committed to ending this dispute,“ he said.
Though many ex-service men continue to express their opposition to the exclusion of officers who took voluntary retirement and the clause resetting pensions at five years instead of annually or biannually , the decision has implications for BJP that sees the fauji as an important part of its support base. OROP fig ured in recent Sangh Parivar discussions where Shah assured an early decision.
Accusing Congress of paying lip service to the OROP demand, Shah said: “The previous government allocated just Rs 500 crore for the implementation. This was a speck of what was required.No effort was made to resolve the contradictions and implement OROP .“
Shah said while ex-servicemen stand to benefit between Rs 9,000 crore-10,000 crore annually , the amount will increase over years. “The issue took time due its com plexity , but with cooperation of ex-servicemen organizations, the best possible deal ws worked out,“ he said.
Asserting that the government acted in ex-servicemen's interest while balancing the need to ensure the fiscal health, Shah said: “With help from ex-servicemen bodies and some individuals, it was possible to resolve the problem.“ BJP hopes the announcement will break in the deadlock with ex-servicemen.The protest had given the Opposition a handle to accuse the Centre of backtracking on a poll promise.
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Veterans' long-standing demand and the basis for it - 

What is OROP?
`One rank one pension' refers to payment of uniform pension to military personnel retiring in the same rank with the same length of service, irrespective of their date of retirement. This also includes any further enhancement in pension rates to be automatically passed on to past pensioners. The UPA government had announced OROP but left it to the NDA government to implement it. Veterans have been protesting in Delhi against the delay in implementing OROP .They have been insisting that the pensions be revised once a year but the government has opted for a reset every five years. For the current fiscal year, the government has budgeted Rs 54,500 crore for 54,500 crore for defence pension.
UPA had ini tially allocated only Rs 500 crore for OROP . The veterans were demanding that OROP be imple mented from April 1, 2014.
What is the status of Central government employees?
For central government employees (civilians), the government appoints a Pay Commis sion which revises the pay and pensions every 10 years. These recommendations become a benchmark for state-run firms and other government entities. Civilians who joined the central government from January 2004 have contributory pension under the National Pension Scheme which means they have to contribute 10% of their basic salary with a matching contribution from the government. Nearly all state government have opted for NPS while, even after 11 years, defence personnel are outside the ambit of NPS and the government funds the entire liability from the budget.
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Former defence personnel start counting their gains



The fine-print of the OROP formula is awaited but rough calculations show retired military officers' pension hike will range from Rs 8,000 to Rs 22,000 per month and jawans and JCOs will get Rs 2,200 to Rs 9,000 more every month.“But these are very complex calculations...the situation will be much clearer after the detailed government order comes out,“ said an officer.
While figures will vary from one retired personnel to another, here are three illustrative examples: --Havildar Major Singh, who was discharged from the Sikh Light Infantry in 1991, draws Rs 5,595 as monthly pension. “He will now get Rs 4,000 more every month,“ said one of his colleagues.
--A colonel who retired in 2001 gets Rs 44,000 as pension now. He will get Rs 10,000 to Rs 15,000 more per month.
--A brigadier who retired in April 1996 after 33 years of service, gets Rs 62,300 as monthly pension. “I have been told I will get at least Rs 9,000 to Rs 10,000 more after OROP ,“ he said.
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PARALLEL STIR - Splinter group on fast for JCOs, NCOs and jawans

A sizeable number of ex-servicemen has moved away from the main OROP agitation and joined another protest led by a body `exclusively for soldiers who retired as jawans, junior commissioned officers (JCOs) and non-commissioned officers (NCOs)'.True, senior officers leading the OROP stir are talking about problems jawans, JCOs and NCOs face, but their demands were mostly about fulfilling the needs of commissioned officers, the breakaway group claims.
“What about issues like equalized military service pay (MSP)? We jawans are always in the direct line of fire and face maximum threat to life in any conflict. But officers get higher remuneration on this account. The MSP for officers, military nursing services and JCOsother ranks are Rs 6,000, Rs 4,200 and Rs 2,000,“ Bir Bahadur Singh, national coordinator of the Voice of Ex-Servicemen Society (VESS) said. A jawan's family pension is a mere Rs 3,500 and it must be reviewed, Singh said.
At least four veterans who retired as jawans, hawaldar or subedar are on a parallel fast to press for their demands. “We have been protesting since August 23. A copy of our demands has been submitted to the PMO but there's no response. We haven't been involved in any meeting between the defence ministry and OROP protestors,“ said Hawaldaar (retired) Balwinder Singh.
Officers leading the main protest claim the group was propped by `vested interests' to weaken their agitation.
===============================================
OROP: Parrikar attacks UPA govt's Rs 500 cr budget in 2014



Some Issues Still Remain: Veterans
Over 40 years after it was first demanded, 84 days after military veterans upped the ante by sitting on dharna and even going on a fast-unto-death and following PM Narendra Modi's Independence Day pledge to deliver his poll promise, the Centre on Saturday announced im FULL COVERAGE: P13 plementation of `one rank, one pension' (OROP) for over 24 lakh ex-servicemen and 6 lakh war widows in the country .Defence minister Manohar Parrikar said the detailed government order for OROP would be issued in a month or so under the special category of “military pension“ to fulfill the commitment made by the PM “despite the huge fiscal burden“ of Rs 8,000-10,000 crore every year. “It's a matter of deep anguish that various governments remained ambivalent on the issue of OROP,“ he said.
The package announced on Saturday confirms the details published in TOI's front page report on September 5.
The drama did not end with the announcement as Parrikar met a delegation of veterans late on Saturday to address discontent over personnel opting for voluntary retirement being kept out of the benefits. “The minister agreed there is no VRS in the armed forces. So, OROP will be applicable in premature retirement cases also,“ said Indian Ex-Servicemen Movement chairman Major General (retd) Satbir Singh. Though the VRS was a major stumbling block, veterans still have some issues that they feel are not resolved, but Gen Singh said a call whether to continue the agitation at a meeting on Sunday morning.
With delay in the OROP announcement seen to hurt the government's credibility and the issue also figuring at the BJP-Sangh deliberations that ended on Friday , the OROP has been a major political problem for the government. BJP sees serving and ex-servicemen as a major constituency and the sentiment attached to giving veterans their due resonates with the party's “nationalist“ credentials, making resolution of OROP an urgent task.
The veterans welcomed the “intent“ to implement OROP but said they were some issues like the government's decision to allow “pension equalization“ only once every five years, and not a revision every two years as they had demanded to be considered. At his late evening with the veterans, Parrikar assured that the government will come out with “a clarification“ on the VRS issue in a day or two.
Officers and other ranks often opt for PMR after becoming eligible for pensions, on com pleting 20 years and 15-17 years of service respectively , since promotion avenues are extremely limited in the steeplypyramidal structure of the armed forces. This also keeps the forces young and fightingfit. Expressing “satisfaction“ on the PMR front, Maj-Gen Singh said there were “other issues“ still pending. “We will take the decision on whether to continue our agitation after talking to the core group,“ he said.
The veterans also demanded that the government reconsider its move to set up a onemember judicial committee to “thoroughly examine interests of retirees of different periods and different ranks“, consider inter-service issues and submit its report in six months. Instead, they said a five-member committee, with three of their representatives, should be set up to submit a report within 30 days.
The fact, however, remains that implementation of OROP will bridge the gap in pensions between veterans who have retired earlier and those who retire later, which had progressively increased with each Central Pay Commission every 10 years.Rough estimates show that while retired officers will get a monthly hike ranging from Rs 8,000 to Rs 22,000 over their existing pensions, jawans and junior commissioned officers will get Rs 2,200 to Rs 9,000.
But with the gap between the government and veterans on several issues still persisting, defence minister Manohar Parrikar, flanked by the three Service chiefs, merely read out a statement to announce implementation of OROP , without taking any questions.
Parrikar did, however, attack the previous UPA government for providing only Rs 500 crore in the February 2014 budget without specifying what OROP would be, how it would be implemented or how much it would cost. “The present government has accepted OROP in the true spirit without being constrained by inaccurate estimates,“ he said.

================================================
(SOURCE- TOI)

OROP - CLARIFICATION ON VRS CLAUSE


Defence Minister Manohar Parrikar with Air Chief Marshal Arup Raha and Army Chief General Dalbir Singh Suhag at a press conference to announce implementation of One Rank One Pension (OROP) scheme in New Delhi,on Saturday.(Photo by Virendra Singh Gosain/ Hindustan Times)


The government on Saturday evening  "indicated" that premature retirees will not be left out of the 'One Rank One Pension', thus addressing a major contentious issue between the two sides.
This was conveyed to a delegation of ex-servicemen led by major general (retd) Satbir Singh who met defence minister Manohar Parrikar and minister of state for information and broadcasting, Rajyavardhan Singh Rathore.
Speaking to reporters after the meeting, Satbir Singh said they were "satisfied" with the government's clarification on "VRS" which would affect at least 40% of defence personnel. Both sides still differ on a few other major features of the government's OROP announcement.
"Defence minister has confirmed that there is no VRS in defence services and so OROP will be applicable in PMR (pre-mature retirement). An official note would be given in a day or two after having a word with the Prime Minister. Parrikar has confirmed that he would give a clarification tomorrow evening or day after tomorrow. As far as defence minister and we are concerned that clause goes," Singh told reporters.
Minister Rathore said, "Any premature retirement which is valid and legally acceptable to the armed forces will be given 'One Rank One Pension'."
PTI quoted Singh as saying that the core group of agitating army veterans would take a fresh call on continuing with their agitations. But TV channels reported there would be no rethink as the government had not conceded to the other demands.
The confusion over "VRS" came after Parrikar said defence personnel who take "voluntary retirement" will not be covered under OROP.
OROP, that implies uniform pension for armed forces personnel retiring in the same rank with a same length of service, would be implemented from July 1, 2014 on the basis of calender year 2013.
Arrears, estimated to cost between Rs 10,000 crore to Rs 12,000 crore, would be paid in four half-yearly instalments. However, all widows, including war widows, will be paid in one instalment.
The pension would be revised every five years, while the ex-servicemen are still demanding a yearly review.
The veterans are also unhappy over the government's decision to institute a  one-member judicial committee to report within six months after examining various aspects. They want a five-member panel comprising mostly ex-servicemen.
Ex-servicemen who have been on an agitation for the past 84 days, took no time in rejecting the government's announcement and declaring that they will continue the stir. They also announced a massive rally on September 12.
(With inputs from agencies)
COMMENTS
  • Now DM says there is no such thing as VRS in military - that means Finance ministry babus prepared the draft and got it approved from FM? How would PM know whether there is VRS in military or not, he is in Delhi only for 18 months. So the draft should have gone to defense ministry where military advisers are there! Military advisers are not allowed in PMO (what is the need NSA will take care).
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        Who are your advisers Mr Modi? Veterans have so much respect for you but you certainly do not have good advisers? Draft OROP was discussed with DM, who is head of department for veterans?
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            The real BOSS is out on visit to Turkey. Now if general Viz is complaining why RM did not take corrective measure on draft OROP (conveniently leaked to media) after meeting veterans - how could he ? FM had approved the draft after he got the draft prepared from his minions and handed over to PMO before he left for Turkey? Now RM told veteran leaders that he will talk to PM to get the draft corrected on VRS (RM has already promised that VRS in draft was a mistake) ? Is it so - but how come PM authorize any corrections in draft in the absence of BOSS, who is still on tour abroad? So much for the so called dictator PM? The BOSS delivered DELHI (a..la..Bedi - Amit Shah had no idea about credentials of Delhi CM candidates) and now in 2019 he will deliver INDIA (a..la..veterans)!
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                In the armed forces, every person has to serve a minimum number of years to become eligible for pension. Once that person meets that requirement, he is eligible to put in his papers to quit and retire with a pension. This is the legally acceptable situation. So there is no VRS in the armed forces. You can call it VRS only if the personnel quit the service before completing their minimum number of years of service to become eligible for pension. Armed forces are pyramidal in structure. Unlike in the civil service, where there are scores of secretaries, commissioners and other chiefs in various departments, in the armed forces there can be only one general, admiral or air chief marshal and all others will be eventually passed over for promotion. Further the armed forces are required to be lean, mean, young and active. So, those who could not make it to higher ranks or have no more hope of future promotions will opt out to retire. Otherwise they will be eventually serving under their juniors who would have overtaken them. That situation is the most dreaded one and nobody wants to be in that situation. .
                  • Avatar
                    NDA announced OROP and still did not earn the goodwill and respect of the Veterans and the Serving Military men.
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                        No one can ever be perfectly satisfied. Same is with OROP. However people in defense services would agree that this is a HUGE step by Modi government . All Congress did was talk for decades!
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                            Ahh! UPA Ulluks did not get a chance to come in between to stir it up!
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                                I am a civilian and saw the drama by the Sardarji who was leading the veterans.
                                He could not get anything from all the previous regimes but knowing fully well that this government will fulfill the demand, made a such a show of rejecting all the promises like a trade union leader.
                                He forgot that everybody in this country serves the nation and if defence is important, so is the farming,medical, transport or sweeping the roads.. Don'r forget that people working in other sectors are equally serving the nation. What will the defence alone do if everybody stops working and start demanding things on gunpoint?
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                                  Great work! Had I been PM or Defense Minister, I would have paid since independence, no matter whatever would have been the burden. Armed forces are cheated in this country. Why had armed forces getting lower pension when other government employees were entitled to higher pension? Modi has not broken the promise and paid from 1st July, 2014. Believe me or not but something will come out on black money also before next general elections.
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                                      It was disgusting to see mafia gang ex ministers Mr Clean Antoney and Mr zero Sibal appeared as Congress item girls to spin the news.
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                                          Great work by govt. NDA always known to solve long pending issues like border issues with Bangladesh. Opposition should co-operate with PM. Next GST
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                                              Why mafia people will cooperate with us or PM. Any we need to support this PM during tough times otherwise gangs will come back and loot us. Next time we will not be having any option and it will become like Syria, Iraq , Pakistan, Sudan , Egypt etc . So I request my fellow citizens to be careful
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                                                Modi Govt delivered a bonanza to veterans. It is an open secret that officers are biggest beneficiaries. Thus they were leading the agitation. Now these veteran shall come out with other reform in armed forces, Equal Ration to all soldiers/officers, no mate/domestic aid to officers, no liquor from CSD. Do they have courage?
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                                                    The GOVT should also consider woes of other employees who are worst sufferer of GOVT APATHY. The retired Coalmine employees are getting onetime fixed pension for whole life where there is no provision of DA & its increase in basic pension according to inflation as admissible to other retiree in govt. This is gross injustice done to COAL EMPLOYEES WHO ARE ALSO SACRIFICING THEIR LIFE FOR NATION by living in remotest area with so many health hazards which is causing several dreaded diseases. The working conditions in underground mines are very haphazard which can not be visualized by politicians & bureaucrats sitting in air conditioned chamber in Delhi. So the govt must consider REVISION OF PENSIONS of retired Coal Employees with variable DA to offset galloping inflation prevailing in this country by wide spread corruption prevailing in every walks of life which is beyond control of govt. Otherwise Coal workers have also to resort to similar agitation as done by ex-service men or may call for indefinite strike in COAL Mines. This matter needs to be vigorously followed by COALMINES WORKERS FEDERATION IN FUTURE WAGE AGREEMENT WITH GOVT WHICH IS DUE NOW. THE GOVT MUST EXTEND PENSION AT PAR WITH GOVT EMPLOYEES. The trade unions for Coalmine Workers should fight for this demand.
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                                                        Shame on Mr Anthony. What he was doing when he was defence ministers. He enjoyed cars, bungalows and AC rooms and sit in the house and make meaningless, worth less comments. Shame sir, U made Ex service men suffer all these years. U will also suffer like them one day. It is the curse of 50 lakhs military people and their widows.
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                                                            60 years of congress rule created problems of the Himalayan proportions and now people blame modi for finding the solutions!!!!. We are a ungrateful nation.
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                                                              Government has insulted and denigrate the Veterans. They seem to be begging for everything which should have been the fundamental right.
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                                                                This is really great from Modi Government. Modi Govt is sincerely trying to fulfil all its promises but they do not have strength in Rajya Sabha which has become hurdle for Nation's Development.
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                                                                    Congratulations to both Government and Servicemen for coming to agreement. This government has achieved what the previous governments have completely ignored. Our servicemen deserve the best. This may not be the best but it is sure is the first step towards the country paying back to the servicemen.
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                                                                        OROP issue could have been solved years ago ( by congress government) but left for NAMO to resolve. Every issue that is taken up by congress are those which were once with them, but failed to resolve.This is how congress is helping BJP to get more votes in the coming elections of all nature - state / center.Wish bkp wins any coming election with thumbing majority.
                                                                      (SOURCE- HT)

                                                                      OROP : PM Clears Air on OROP. Hunger Strike Over But Stir On: 10 Developments


                                                                      SOURCE:
                                                                      http://www.ndtv.com/cheat-sheet/pm-modi-clears-air-on-orop-veterans-stick-to-stand-stir-on-1214741?pfrom=home-lateststories






                                                                                          PM Clears Air on OROP.

                                                                                      Hunger Strike Over But Stir On

                                                                                               : 10 Developments







                                                                      PM Clears Air on OROP. Hunger Strike Over But Stir On: 10 Developments
                                                                      Prime Minister Narendra Modi cleared the air on OROP today.
                                                                       
                                                                       
                                                                      New Delhi:  Prime Minister Narendra Modi today said servicemen who have taken early retirement will be eligible to receive the benefits of the One Rank One Pension scheme. But protesting ex-servicemen said they would call off the stir only after all their demands were met. They have called off the indefinite hunger strike for now.
                                                                       
                                                                                    
                                                                       
                                                                       
                                                                       
                                                                      Here are the latest developments:
                                                                       
                                                                       
                                                                      1. Speaking at a rally in Faridabad, PM Modi said, "80 per cent people in the army work in junior posts, fight from the front lines and have to retire after 15 or 20 years... They will be among the first to get the benefits."
                                                                      2. Ex-servicemen who have been disabled in the line of duty will also get the benefits. "People are being misled about the government position on OROP and VRS," PM Modi said.
                                                                      3. At Delhi's Jantar Mantar, the 14 protesters who have been on indefinite hunger strike, were offered food. But Majo General (Retd) Satbir Singh, who is leading the ex-servicemen's association, said the stir will be on till all their demands were met.
                                                                      4. Thanking the Prime Minister for the clarity on early retirees, Satbir Singh said, "We will get back to hunger strike till death if the government does not approve our demands."
                                                                      5. The veterans demand pension equalisation every year, not every five years as announced by the government; 2013-2014 as the base year for salary calculation; and they do not agree to the setting up of judicial board.
                                                                      6. The veterans, who have been protest for 88 days, said they were organising a rally, the Gaurav rally, on September 12.
                                                                      7. The government announced the long-awaited scheme on Saturday. But the veterans had sought a written statement.
                                                                      8. There has been also confusion over whether premature retirement rule would keep ex-servicemen out of the new benefits.
                                                                      9. Indicating the reason for the delay in implementation of OROP, PM Modi said the estimate of Rs. 500 crore was a miscalculation by the previous government. "I went deeper into the issue. This is about Rs. 8,000 to Rs. 10,000 crore," he said.
                                                                      10. The nearly decade-long campaign says former army officers and soldiers must get the same pension as those of the same rank retiring now. Existing policy creates a huge disparity, with former officers getting far lower pension than those junior to them retiring later.
                                                                      Story First Published: September 06, 2015 15:02 IST
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       

                                                                        OROP : मोदी को हमने हुकुम दिय्या मोदी ने एलान किया

                                                                        SOURCE:
                                                                        http://www.msn.com/en-in/news/national/soldiers-who-retired-prematurely-will-get-orop-benefits-modi/ar-AAdZX25





                                                                          मोदी को हमने  हुकुम  दिय्या मोदी ने एलान  किया - वसुंधरा

                                                                                                
                                                                                                 Soldiers who Retired
                                                                                                        'Prematurely'
                                                                                             will get OROP Benefits: Modi


                                                                        Prime Minister Narendra Modi said on Sunday that armed forces personnel who retired prematurely will be entitled to benefits under 'one rank one pension (OROP)',

                                                                        ......- reaching out to ex-servicemen a day after his government announced the scheme but differences cropped up over entitlements to those who opted for the voluntary retirement scheme(VRS).

                                                                         
                                                                        "VRS key naam pe bhram failaya jaa raha hai (Some people are trying to spread confusion in the name of VRS)," Modi said at a rally in Faridabad.
                                                                         
                                                                        -------------------------------------------------------------------------
                                                                        More on OROP issue
                                                                        Bouquets and brickbats: Who said what on OROP announcement
                                                                        Has the govt given a lot without giving anything?
                                                                        -------------------------------------------------------------------------


                                                                        Modi stressed his government had delivered on the OROP promise, even though the scheme was stuck for more than four decades and the previous regimes failed to make a breakthrough. 

                                                                         
                                                                        The government announced on Saturday the scheme will be implemented with effect from July 1, 2014, with arrears amounting to anywhere between Rs 10,000 crore and Rs 12,000 crore.

                                                                         
                                                                        While war widows will get arrears in total, others will be paid in four half-yearly instalments. While announcing the scheme, defence minister Manohar Parrikar said pensions would be re-calculated every five years but military personnel who took “voluntary retirement” will not be entitled to OROP.

                                                                         
                                                                        The veterans, who have been holding protests across the country for more than two months, want the pension to be reviewed every two years and the benefits of the scheme extended to those who retired voluntarily or prematurely from the armed forces.

                                                                         
                                                                        © Provided by Hindustan Times


                                                                        Another bone of contention is the government's decision to set up a single-member judicial committee to look into different aspects of OROP, including inter-services matters. The government said the panel will submit its report in six months but veterans want a deadline of 30 days. They also demanded that the panel have five members, including three veterans.

                                                                                                                                                    





















                                                                         

                                                                        Saturday, September 5, 2015

                                                                        OROP :Bouquets and brickbats: Who said what on OROP announcement

                                                                        SOURCE:


                                                                        Bouquets and brickbats: Who said what on OROP announcement
                                                                        Has the govt given a lot without giving anything?



                                                                        1 / 56



                                                                        Hari Ram saw combat in both the 1965 and 1971 wars against Pakistan. When he joined the Army as a Sipahi, he would make just about the same wage as a day-labourer - Rs 60 a month.
                                                                        "But I joined for the love of the Army," the retired soldier, now in his seventies, says.
                                                                         
                                                                        -------------------------------------------------------------------------------
                                                                        More on OROP issue
                                                                        Bouquets and brickbats: Who said what on OROP announcement
                                                                        Has the govt given a lot without giving anything?
                                                                        -------------------------------------------------------------------------------

                                                                        Hari Ram's pension till date was a meagre Rs 3,500 per month. He is hoping after today's announcement of the One Rank One Pension scheme, his pension will jump by roughly Rs 4,000.

                                                                         
                                                                        But he hasn't started celebrating just yet. "I'll wait to see what will finally come to me. There is nothing on paper yet," he says.
                                                                         
                                                                        Havaldar Attar Singh also fought in the 1971 war but when he lost his father in 1991, he was forced to leave the Army to take care of his family back home. His basic salary then was only Rs 1,250. "I had no option when I left the Army, no job opportunity and a dependent family. If we are left out because we retired prematurely from the army, where would that leave us today," he asks.
                                                                        With pension and allowance hike included under the new plan, he is expected to take home close to Rs 17,000 per month.
                                                                         
                                                                         
                                                                        But there is still confusion over whether the premature retirement rule would keep them out of the new benefits, they say. The veterans are still waiting to understand the fine print of the government's new rules, which, according to sources will protect those who sought voluntary retirement in the past. Those retiring now however may no longer get this benefit.
                                                                         
                                                                        Retired subedar Sube Singh says, "We can't even go back home with so much confusion. Our families will wonder what we have been doing for 80-odd days only to return empty handed."
                                                                        The veterans say the One rank One Pension or OROP announcement has led to more confusion on who will be included or left out - reason why nearly three-month-long agitation continues at Jantar Mantar
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         

                                                                        MARITIME ; SOUTH EAST ASIA :- Thailand’s Kra Canal: Is Vietnam Angling In?

                                                                        SOURCE:
                                                                        http://www.eurasiareview.com/04092015-thailands-kra-canal-is-vietnam-angling-in-analysis/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+eurasiareview%2FVsnE+%28Eurasia+Review%29





                                                                                                    Special Report
                                                                        - Indian Ocean: Battle for Supremacy


                                                                        Published on Apr 23, 2015
                                                                        There is a perceived threat from China, not just on the LAC and international border, but also in the Indian Ocean. This has been confirmed by the Defence Ministry in a report. China continues to extend its footprint in India's immediate neighbourhood and India is not very pleased. On this special report, we’ll take a look at the battle of supremacy in the Indian Ocean.

                                                                        Anchor: Frank Rausan Pereira




                                                                        Thailand’s Kra Canal: Is Vietnam Angling In?



                                                                        Map of possible plans for the Thai (Kra) Canal. Author: Maximilian Dörrbecker (Chumwa), CIA World Factbook, Wikipedia Commons.
                                                                        Map of possible plans for the Thai (Kra) Canal. Author: Maximilian Dörrbecker (Chumwa), CIA World Factbook, Wikipedia Commons.


                                                                        Thailand’s Kra Canal: Is Vietnam Angling In? – Analysis


                                                                        By
                                                                        Friday, September 4th, 2015




                                                                        Vietnam’s decision to build a deep-water seaport off its southern-most province of Ca Mau may signal the eventual building of Thailand’s Kra Canal as a new regional shipping lane.
                                                                        By Graham Ong-Webb*


                                                                        Talk just won’t go away about a possible shipping lane – the Kra Canal – that, if it ever were to materialise, would be built through Thailand’s Kra Isthmus, enabling ships to bypass the Strait of Malacca, and, in the process, Singapore’s port hub.


                                                                        The long-touted idea of such a canal, while conveniently linking the Gulf of Thailand with the Indian Ocean, is fraught with regional geopolitical sensitivities. Recent developments would elevate that to include China-United States sensitivities, as well. This is particularly so after Chinese media reported in May that China and Thailand had signed a memorandum of understanding in Guangzhou to build the Kra Canal for US$28 billion (S$39.4 billion).


                                                                        Enter the Vietnam Angle?

                                                                        Officials from both countries quickly denied the report in a matter of days. Still, that did not stop speculation that the project will be revived. Then in July, Vietnam announced that it would build a US$2.5 billion deep-water seaport, named Hon Khoai Port, on an island 17km off the coast of Ca Mau, Vietnam’s southern-most province. The project was approved by Prime Minister Nguyen Tan Dung.

                                                                        On the surface, any link between Hon Khoai Port and the Kra Canal – which various quarters of the Thai political and business elite would like to see built – would not seem apparent. This is because the deliberation over the port has been couched within the larger issue of Vietnam’s decision to increase its coal imports to meet growing energy needs.

                                                                        True, a Wall Street Journal report cited Indonesia and Australia as the “most promising” among four coal providers, besides China and India, for Vietnam. Sitting astride the Gulf of Thailand and the East Sea, Hon Khoai Port is well sited to receive Indonesian and Australian shipments. But the decision to build the port does not really make complete economic sense – until it is superimposed on the potentially heady commercial traffic the Kra Canal stands to provide.

                                                                        Catering to non-coal Imports

                                                                        The project has undergone two different configurations, but both set-ups cater to commodities beyond coal. The current configuration is the outcome of the 2015 feasibility study undertaken by Bechtel Corporation, the largest US construction and civil engineering company, in a deal signed with Vietnamese firm Van Phong. This set-up will see 12 transhipment berths planned for the port, half of which will be dedicated to non-coal imports.

                                                                        The previous configuration, by the Vietnam Marine Administration in partnership with Australian-based N&M Commodities, called for 24 piers in which only half were for coal. The rest would cater to bulk goods, containers, petroleum, LNG (liquefied natural gas) and roll-on/roll-off ships designed to carry wheeled cargo – the very commodities and products that would pass through the Kra Canal and coming from as far as the Middle East and Europe.

                                                                        If the current arrangement with Bechtel follows through, Hon Khoai Port pins US commercial interests right at the centre of the new geo-economic picture shaped by the transformative power of the Kra Canal. In addition to the strong American clout brought in through Bechtel, it is also reported that 85 per cent of Hon Khoai Port will be financed by the US Export-Import Bank.


                                                                        Ex-Im Bank, as it is known, is the US export credit agency. The role of Bechtel and Ex-Im Bank likely signals strategic movements by the US to ensure it does not find itself on the outside of an Asian economic architecture being shaped by China.

                                                                        Critical artery for China

                                                                        The Kra Canal would not only transform Thailand into a regional maritime centre that could trump the Singaporean and Malaysian port hubs along the Malacca Strait. It would also serve as a critical artery of China’s Maritime Silk Road, now part of the country’s “One Belt, One Road” blueprint.


                                                                        Chinese involvement would surely see its newly founded Asian Infrastructure Investment Bank (AIIB) – designed to finance large-scale infrastructural projects – weighing into this particular project. Nationalist types chattering within China’s influential virtual communities such as Tiexue Luntan (the Iron and Blood Forum) are already calling for the AIIB to inject life into Thailand’s long-held dream of building a Kra canal.


                                                                        At the end of the day, though, the relationship between the proposed Kra Canal and Hon Khoai Port would amount to mere conjecture if not for the fact that Vietnam’s media coverage on the port project came at the same time in July that the third joint Cabinet meeting between Thailand and Vietnam was held in Bangkok.


                                                                        Significantly, the outcome of the latest discussions between Prime Minister Nguyen and Thailand’s Prime Minister Prayut Chan-o-cha was a statement stressing the importance of resolving disputes through peaceful means in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea, and boosting dialogues and consultations to reach a Code of Conduct of Parties in the East Sea.


                                                                        Thailand’s Kra Canal and Vietnam’s Hong Khoai Port now both sit within the larger US-China competition over cooperative economic projects within ASEAN as China pushes for regional leadership – at least in economic terms – and as the US “rebalances” to Asia to maintain its own influence. As both projects are also adjacent to the South China Sea – and the current US-China tensions manifested therein – the Kra Canal and Hong Khoai Port must be assessed in the larger context of regional order setting driven by these two foremost powers of our times.


                                                                        *Graham Ong-Webb is a Research Fellow with the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University, Singapore. This appeared earlier in The Straits Times.

                                                                        Published by

                                                                        RSIS

                                                                        RSIS

                                                                        RSIS Commentaries are intended to provide timely and, where appropriate, policy relevant background and analysis of contemporary developments. The views of the author/s are their own and do not represent the official position of the S.Rajaratnam School of International Studies (RSIS), NTU, which produces the Commentaries.